To amend the Financial Stability Act of 2010 to require the Financial Stability Oversight Council to consider alternative approaches before determining that a U.S. nonbank financial company shall be supervised by the Board of Governors of the Federal Reserve System, and for other purposes.
Sponsors
Legislative Progress
ReportedAdditional sponsors: Mr. Gottheimer, Mrs. Kim, Mr. Sherman, Ms. Pettersen, …
Reported with an amendment, committed to the Committee of the …
Mr. Foster (for himself and Mr. Huizenga) introduced the following …
Summary
What This Bill Does
Requires Financial Stability Oversight Council to first determine that less restrictive alternatives are impracticable before voting to designate a nonbank company as systemically important (SIFI designation).
Who Benefits and How
- Large nonbank financial companies face higher bar for SIFI designation
- Insurance companies gain protection from regulatory designation
- Asset managers benefit from alternatives-first approach
Who Bears the Burden and How
- FSOC must document why alternatives insufficient
- Systemic risk monitoring may be delayed by alternatives requirement
- Financial stability potentially affected by slower designation
Key Provisions
- FSOC must determine alternatives impracticable before voting
- Consultation with company and primary regulator required
- Company may submit written plan to mitigate risk
- Heightened standards under Section 120 considered first
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Requires FSOC to consider alternatives before designating nonbank financial companies as systemically important
Policy Domains
Legislative Strategy
"Raise bar for SIFI designation through alternatives-first requirement"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_council"
- → Financial Stability Oversight Council
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology